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Nevada – Bad Debt Deduction Provisions

SALT Report 2563 – The Nevada State Legislature passed a Bill that amends certain provisions of the bad debt deduction which allows a retailer who is unable to collect all or part of the sales price of a sale to receive a deduction from their taxable sales for that bad debt.

Specifically, Senate Bill 152, provides that retailers who claim a deduction or refund of sales or use tax will not be affected by the assignment of the debt to an affiliated entity that includes the retailer, or the writing off by the entity of the debt as a bad debt, and the eligibility of the entity to deduct the bad debt under the federal law.